ADQ prices inaugural USD 2.5 billion bond listed on the London Stock Exchange

Abu Dhabi Developmental Holding Company PJSC (“ADQ”), an Abu Dhabi-based investment and holding company, announced its inaugural USD 2.5 billion bond issuance on the London Stock Exchange (LSE) as part of a significant step in diversifying its funding sources and supporting its strategic growth agenda. 

Leveraging favorable market conditions and continued investor appetite for high-quality, investment-grade bonds by emerging market issuers, the combined order book peaked at over USD 11 billion, reflecting an oversubscription of more than 4.4 times. 

At pricing, the annual coupon of the five-year USD 1.25 billion tranche was fixed at a rate of 5.498%, while the ten-year USD 1.25 billion tranche achieved a coupon rate of 5.5565% per annum. The issuance accomplished broad institutional distribution, attracting major investors across Asia, the US, the Middle East, UK and Europe.

The proceeds from the offering will serve as growth capital and facilitate further investments in strategic initiatives that contribute to the realization of ADQ’s mandate and expansion in key sectors, driving economic prosperity in Abu Dhabi and beyond.  

His Excellency Mohamed Hassan Alsuwaidi, Managing Director and Chief Executive Officer of ADQ, said: “The significant market response to our inaugural bond issuance validates the strength of ADQ's credit profile, which benefits from the stability and resilience of the wider Abu Dhabi economy. Furthermore, it is reflective of investor confidence in Abu Dhabi’s capital markets and in ADQ's compelling growth prospects, which are anchored in the execution of our transformative mandate in sectors providing essential services and products to people in the Emirate and beyond.” 

Marcos de Quadros, Chief Financial Officer at ADQ, added: “The success of the issuance under our newly established Global Medium Term Note Programme highlights strong investor appetite, underpinned by robust market fundamentals. Achieving an oversubscription of more than 4.4 times, the issuance demonstrates the commercial attractiveness of our business, which effectively balances non-financial impact with robust financial returns. Going forward, the Programme will enable us to utilize debt capital markets as an effective option to fund our long-term investments and continue to support Abu Dhabi’s sustainable economic development.” 

As of 31 December 2023, ADQ’s total assets amounted to USD 196 billion. ADQ has shareholdings in more than 25 portfolio companies, structured into seven economic clusters which cover key sectors of the transforming economy. This includes numerous critical infrastructure assets spanning utilities, transportation, healthcare, agriculture and real estate.

ADQ is rated Aa2 by Moody’s and AA by Fitch, both with a stable outlook.

‍

NOT FOR PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, OR ANY OTHER STATE OR JURISDICTION IN WHICH SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL.

This information does not constitute an offer, or an invitation to purchase, securities of Abu Dhabi Developmental Holding Company PJSC (ADQ) in the United States or in any other jurisdiction in which such offer or invitation is not authorised or to any person to whom it is unlawful to make such offer or solicitation.  Potential users of this information are requested to inform themselves about and to observe any such restrictions.

ADQ's securities cannot be offered, sold, transferred or otherwise disposed of, in the United States, or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the Securities Act of 1933, as amended (the Securities Act)), absent registration, or an exemption from, or in a transaction not subject to, the registration requirements under the Securities Act.  ADQ has not registered, and does not intend to register, any of its securities under the Securities Act or to conduct a public offering of securities in the United States.

This communication has not been approved by the United Kingdom Financial Conduct Authority. This communication does not constitute an offer of the securities to the public in the United Kingdom. This communication is being distributed to and is directed only at (i) persons who are outside the United Kingdom or (ii) persons who are investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the Order), and (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order, and (iv) any other persons to whom it may otherwise lawfully be communicated or caused to be communicated (all such persons in (i) to (iv) together being referred to as Relevant Persons). Any investment activity to which this communication relates will only be available to and will only be engaged with, Relevant Persons. Any person who is not a Relevant Person should not act or rely on this communication or any of its contents.

This is an advertisement and not a prospectus for the purposes of Regulation (EU) 2017/1129 (the Prospectus Regulation). Investors should not subscribe for or purchase any securities referred to in this advertisement except on the basis of information contained in the base prospectus.

‍